Stolen Goods and the Proceeds of Crime

Question 1

Stolen goods includes what?

Answer 1

‘Money and every other description of property, except land, and includes things severed from the land by stealing’ (s 34(2)(b) of the Theft Act 1968).

For this offence goods are considered to be ‘stolen goods’ if they have been obtained through theft, blackmail or fraud (ss 1 and 21 of the Theft Act 1968 and s 1 of the Fraud Act 2006).

Stolen goods also include any gain or return from the disposal of the original stolen items such as money or other items which have been received in exchange (s 24(2) of the Theft Act 1968).

Question 2

What are ‘notionally stolen goods’?

Answer 2

Stolen goods which include any gain or return from the disposal of the original stolen items such as money or other items whichh have been received in exchange (s 24(2) of the Theft Act 1968).

Question 3

After the original theft there is often a whole chain of events, and each of the handlers in the process commits the offence of handing stolen goods.

This only occurs in what circumstance?

Answer 3

If each has guilty knowledge (mens rea) that the goods were originally acquired by theft.

The chain will only be broken when a person receiving the goods is unaware of their origins.

Question 4

Offences related to handling stolen goods are covered where?

Committed when someone does what?

Answer 4

s 22 of the Theft Act 1968.

Committed when a person handles goods that they known or believe to have been stolen.

The person can receive the items, or agree to or asst with their retention, removal, disposal or realisation by another person.

It is also an offence to make arrangements for any of these acts.

Question 5

The meaning of receiving has been established through case law as what?

Answer 5

‘Gaining possession or control’ and would obviously include carrying or holding the goods.

Having control over goods, is when a person has remote possession; the goods could be kept in storage in a garage or lock up for example.

The receiver does not need to gain in any way from the handling of the goods, but he/she must known the the goods are stolen at the time of their receipt, and there must be proof that the goods were actually received.

Question 6

If the receiver is still negotiating the receipt of the goods, then such an act might be construed as…

Answer 6

Arranging one of the acts which construed as ‘arranging’ one of the acts which constitute handling.

Question 7

When a person has been charged with receiving stolen goods the onus is always on the prosecution to prove the case:

Answer 7

The suspect would have been given an opportunity at interview to explain how/she had innocently acquired the stolen property.

If the explanation is reasonable then the judge might direct the jury to the fact that the defendant might be acquitted.

If no explanation is given then the judge might direct the jury to the fact the defendant had been found with stolen property, and did not account for this.

Question 8

The offence of handling stolen goods can also be committed by a person who is involved in the retention, removal, disposal or realisation of the goods, where:

Answer 8

Retention means continuing to possess something (especially when someone else wants it).

Removal means taking something away from the place where it was.

Disposal means passing on, getting rid of, giving away.

Realisation means obtaining money or profit by selling something.

Question 9

s 22 of the Theft Act 1968

Official handling stolen goods legislation

Answer 9

It is an offence to either…

…dishonestly undertake or assist…
- e.g storing the goods for them, refusing to answer police questions, omission.

…in the retention, removal, disposal, or realisation of stolen goods…

…by another person; or…

…for the benefit of another person.

Question 10

The offence of handling stolen goods is…

Answer 10

Triable either way, the penalty if tried summarily is 6 months imprisonment and/ or a fine, and on indictment up to 14 years imprisonment.

Question 11

Knowing or believing that items are ‘stolen goods’

Answer 11

The handler must know that the items have been stolen for his/her actions to be dishonest, suspicion would not be enough.

A suspect would know the goods were stolen if he/she had been told by the thief or someone with first hand knowledge, or might believe that they were stolen if there was no other likely explanation in the circumstances.

Question 12

What factors will be taken into account in order to establish distinction between ‘handling’ and ‘theft’?

Answer 12

Whether the theft was complete, whether there was a break in the proceedings, and whether the suspect handler became involved only after the theft had occured.

Question 13

Ellis goes to a large out of town electrical store. She takes two DAB radios and hides them in a bin outside the store. Sal then takes them away….

What are some different scenarios to illustrate some differences between ‘handling’ and ‘theft’?

Answer 13

Sal is waiting by pre arrangement and takes the radios away….THEFT.

Sal arrived half an hour later by pre-arrangement, and takes the radios away…THEFT (may be handling of Sal pays Ellis for goods).

Sal is told where the radios are, but only after they have been stolen. Sal then collects the radios…HANDLING.

Question 14

How can a theft become a handler of the property that he/she originally stole?

Answer 14

If they lose control of the property and later decides (whilst the goods can still be referred to as stolen goods) to have dealings with the property once again.

Question 15

What are wrongful credits?

Answer 15

A credit is ‘wrongful’ if the funds concerned were derived from theft, blackmail, fraud or stolen goods.

A person is guilty of an offence under s 24A of the Theft Act 1968 if he/she fails to take reasonable steps for a wrongful credit to be cancelled.

The wrongful credit must have been made to an account kept by him/her (including a joint account).

He/she must know or believe the credit wrongful.

Question 16

What is the penalty for wrongful credits?

Answer 16

The maximum sentence for this offence is ten years imprisonment.

Question 17

It is an offence under what act to benefit from any kind of proceeds of crime?

Answer 17

Proceeds of Crime Act 2002 (POCA)

Criminals will often try and convert the proceeds of crime into assets in order to make their origin appear legitimate, often referred to as money laundering.

Question 18

Proceeds of Crime Act 2002 (POCA)

This legislation make reference to the proceeds of crime as ‘criminal property’. What is that defined as?

Answer 18

Any property which the suspect knows or suspects to represent, the benefit from any criminal conduct (s 340(3)) in the UK (s 340(2)).

Criminal property property includes money; property (real, personal, inherited and moveable); things actions in action such as patents, copyrights and trademarks; and other intangible or incorporeal property such as property rights, leases, or portages (s 340(9)).

Question 19

There are three main offences under POCA, and these cover most eventualities in benefiting from the proceeds of crime:

Answer 19

The concealing offence (s 327(1)).

The arranging offence (s 327(2)).

The acquisition, use and possession offence (s 327(3)).

Question 20

There are three main offences under POCA, and these cover most eventualities in benefiting from the proceeds of crime:

The concealing offence (s 327(1)).

Answer 20

A person commits an offence if they:

• conceal criminal property
• disguise criminal property
• convert criminal property
• transfer criminal property, or
• remove criminal property from England and Wales

Question 21

There are three main offences under POCA, and these cover most eventualities in benefiting from the proceeds of crime:

The arranging offence (s 327(2)).

Answer 21

A person commits the arranging offence if they enter into or become concerned in an arrangement which they know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person.

The suspect must know or believe it was criminal property when the arrangement was made.

Question 22

There are three main offences under POCA, and these cover most eventualities in benefiting from the proceeds of crime:

The acquisition, use and possession offence (s 327(3)).

Answer 22

A person commits the acquisition, use and possession offence if they:

• acquire criminal property
• use criminal property, or
• have possession of criminal property

Question 23

There is a power of search for premises (s 289(1) POCA ) if a police officer…

Answer 23

Has reasonable grounds for suspecting the presence of cash obtained through unlawful conduct (s 304(1)), or intended to be used by any person for an unlawful purpose.

The officer may also search a suspect and any article he/she posses at that time (s 289(2) and (3).

The officer’s presence must be lawful, and he/she must comply with s 2 of the PACE Act 1984 and the PACE Codes of Practice.

Question 24

Defences and penalties

Three defences are available for offences under ss 327(1), 328(1), and 329(1) of the POCA 2002:

Answer 24

• The suspect makes or intends to make (with reasonable excuse) an ‘authorised disclosure’ to a police, customs, or nominated officer, concerning his/her actions
• The suspect knows (or reasonably believes) that the criminal conduct took place outside the UK and that it was not unlawful in that other country (s 327(2) and (2A).
• Law enforcement authorities (such as the police) have a defence if they convert or transfer seized criminal property, for example they placed seized money in an interest earning account.

Question 25

Defences and penalties

An additional defence is available for s 329(1) where…

Answer 25

A person acquires, uses or has possession of the criminal property for ‘adequate consideration’.

A shopkeeper could claim this defence if she sells goods to a customer and the customer pays with money that comes from crime..

Question 26

The ss 327(1), 328(1), and 329(1) offences penalties…

Answer 26

Triable either way and the penalty is a fine or imprisonment (6 months summarily or up to 14 years on indictment).

Question 27

Legislation - s. 22 Theft Act 1968 states that:

Answer 27

“A person handles stolen goods if (otherwise than in the course of stealing), knowing or believing them to be stolen goods, he dishonestly receives the goods, or dishonestly undertakes or assists in their retention, removal, disposal or realisation by or for the benefit of another person, or if he arranges to do so.”

Question 28

Under section 24 Theft Act, stolen goods include…

Answer 28

both the original items stolen and any other goods that represent the stolen items in the hands of the thief or the handler.

Question 29

What is belief?

Answer 29

“Belief is something short of knowledge. It may be said to be the state of mind of a person who says to himself: “I cannot say I know for certain that these goods are stolen, but there can be no other reasonable conclusion in the light of all the circumstances, in the light of all that I have seen and heard.”

Question 30

Example of how to prove knowledge or belief through the circumstances of each case.

Answer 30

If a mobile phone is stolen and sold for a fair price with its box etc through a legitimate shop, it would be hard to suggest that the buyer would have reason to be suspicious.

However, if the phone is sold for £20 “no questions asked” on the street, then the buyer would almost certainly have sufficient mens rea to be handling stolen goods.

Question 31

Receive or Assist in Retention, Removal, Disposal or Realisation definitions

Answer 31

Receiving the goods involved relates to knowingly taking possession or control of them. Receiving goods does not require actual reception of them. No money needs to change hands.

Retention and removal relate to keeping possession or moving around stolen goods respectively.

Disposal and realisation entail converting goods into a different form, e.g. melting down gold bars and selling the gold.

Question 32

Other than those who receive or arrange to receive stolen goods, the handler must assist the retention, removal, disposal or realisation of the goods by another or the retention, removal, disposal or realisation must be for…

Answer 32

the benefit of another.

This ensures that those who act on behalf of third-parties are also guilty of “handling”. For example, if a thief contacts a handler who directs them on to someone who buys the goods, the handler acting as “middle man” will be guilty of handling - even though he has never had any physical possession of the property and may not be deriving any benefit himself.

Question 33

A person is guilty under what section of the Theft Act if they know or believe the credit is wrongful and fails to take reasonable steps to cancel a wrongful credit (the wrongful credit must have been made in to an account made by him or her, including a joint account or any account where they have an interest)

Answer 33

section 24A of the Theft Act 1968

Question 34

LIAT buys a brand new laptop from a corner shop for £50. There are only three laptops in the store and they seem out of place. Liat saw the laptops being unloaded from a car and placed in brown boxes. Liat suspects they are stolen because they are so cheap and in non-standard packaging. She ignores her instinct and purchases one. It transpires the laptop is stolen. Is Liat guilty of handling stolen goods?

Answer 34

True

The handler must know or believe that the items have been stolen for her actions to be dishonest; suspicion would not be enough. However, where a person chooses to become deliberately blind to the circumstances of goods being stolen, especially if there is no other reasonable conclusion to be drawn from the facts.

Question 35

TIM owns a row of garages. He allows his friend TONY to use the end one for storage. TIM becomes aware that TONY is storing stolen jewellery in the garage. He asks TONY to move it asap. After three weeks, the stolen property remains and TIM decides to let it go. It’s only a few old necklaces anyway. Is TIM guilty of handling stolen goods?

Answer 35

True

A person is guilty if they assist in the retention, removal, disposal or realization of stolen goods. As soon as Tim, as the owner of the premises, became aware that the goods being stored were stolen he became complicit if he allows the stolen goods to remain there.

Question 36

ZOE steals a credit card left in the ATM. She use’s the money to buy her partner, AARON, a new phone. Aaron knows Zoe did not have the money to buy one. He asks her where she got the money from and she replies with ‘gift from a friend’ which Aaron believes. Is Aaron guilty?

Answer 36

No

A gift from a friend is a likely explanation and therefore Aaron only has mere suspicion that something might be ‘off’ with the purchase opposed to knowledge or belief that the phone was purchased with stolen money.